You have about the nicest 401k I recall evere seeing. I wouldn'tworry at all about using the PIMCO Total Return Fund Institutional Cl | PTTRX . I do think its easiest to keep the retirement portfolio separate from the shorter term investing at least to start.
tryingtoinvest wrote:Age: 28
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 30% of stocks
Your desired asset allocationis very reasonable in my opinion.
The idea is to get broad diversification (to decrease your risk), with low expenses (to increase your net gain), using tax efficient fund placement (again to increasde your net gain). Wiki article link: Principles of Tax-Efficient Fund Placement
In general it is better to avoid very small fund allocations, like 2 or 3%, since such a small fund allocation cannot materially affect overall portfolio performance in the long run.
Here is a portfolio idea for you to consider, in your desired asset allocation, with total funds available for investing ~$35,000 (all percentages rounded off):Taxable Account
14%, Vanguard Total International Stock Index Fund Investor Shares (VGTSX), er = 0.22%
14%, Vanguard Total Stock Market Index Fund Investor Shares (VTSMX), er = 0.18%401k
28%, Vanguard Inst Index Fund Inst | VINIX, er = 0.04%
00%, Vanguard REIT Index Fund | VGRSX, er = o.1%, <= if you use make it at least 5%, reducing the % of Inst Index
06%, Vanguard Small-Cap Index | VSISX, er = 0.1%, <= with Inst Index in ~ 4.5:1 ratio approximates total market
07%, Vanguard Tot Intl Stock Ix | VTSGX, er = 0.16%
16%, PIMCO Total Return Fund Institutional Cl | PTTRX, er = 0.46%Roth IRA
14%, Vanguard Total Bond Market Index Fund Investor Shares (VBMFX), er = 0.22%
This gives you a simple 6 fund portfolio, which is very broadly diversified , low expense, and tax efficient. It should aslso be easy to manage and rebalance, with any necessary rebalancing done inside the 401k.
I hopethat this helps.